jumped 7% in pre-market trading on Friday after the company said Thursday night that it expected sales of its Covid-19 tests to push its third-quarter revenue to 6% to 7% by compared to the same quarter of last year.
Quidel (ticker: QDEL) said it expected total revenue for the quarter to be between $ 505 million and $ 510 million, compared to $ 476.1 million in the third quarter of last year when announcement of preliminary financial results for the third quarter of the year.
“In the third quarter of 2021, we saw a significant increase in demand in several markets for our SARS category products as Covid-19 infections continued to increase due to the spread of the highly transmissible Delta variant” , said company CEO Douglas Bryant. , Thusday.
Quidel sells an over-the-counter rapid home antigen test for Covid called QuickVue and a rapid point-of-care Covid antigen test for use with its line of Sofia testing systems in healthcare facilities, among others tests.
The company said it shipped 45 million tests for SARS, a category that includes Covid, in the third quarter. He said he expects Covid’s revenue for the quarter to be $ 406 million, up from $ 375.7 million in the third quarter of last year.
“We are not surprised by the substantial pace, given the recent increase in Covid cases and the demand for related testing during the third quarter, although, as we have noted in the past, the demand is likely transient, given the likelihood of a recall pandemic. response after 2022, ”wrote JP Morgan analyst Tycho Peterson in a note released Friday morning.
Quidel shares are down 24% this year and 51% in the past 12 months. The stock exploded at the start of the pandemic, jumping 277% between the end of 2019 and the end of July 2020. Stocks hit $ 301.96 in early August 2020. On Friday, the stock was trading around 145 $ in pre-market.
In his memo, JP Morgan’s Peterson wrote that demand for the QuickVue test was driven by over-the-counter sales. “During our call, management noted that QuickVue OTC sales were minimal at the start of the quarter, but intensified in September as the company increased sales in the retail segment,” Peterson wrote.
Quidel says it has a 12-month contract to deliver up to 51.2 million QuickVue tests to the federal government, and expects the contract to be worth $ 284 million. He said the quantities ordered have yet to be confirmed.
In his statement, CEO Bryant said Quidel will be able to do 50 million QuickVue tests and 20 million Sofia tests. tests per month by the end of the year.
“Even with this incredible performance in the third quarter, we have to reiterate that the SARS testing environment remains very fluid and we have learned that demand can change very quickly,” said Bryant.
The company said it will release full quarterly financial results in November.
Write to Josh Nathan-Kazis at [email protected]